Financial statements

The financial statements are prepared as per the end of the association’s business year. They include an income statement and a balance sheet. If provided for by law or the articles of association, the accounting records and the annual financial statements are submitted to the auditors for review before the general meeting. Together with the annual report (management report), the annual financial statements must be submitted to the general meeting for approval. This approval relieves the committee (discharge).

Question

Does the association year always have to be the calendar year?

Answer

As a rule, no. The majority of all associations are, however, likely to align their activities with the calendar year, which is useful as the two years then run parallel to one another. On the other hand, associations that are active, for example, in the area of education or childcare tend to plan their activities according to the school year or on a semester basis. In such cases, it makes sense for the association year to deviate from the calendar year. Under certain circumstances, there may be a certain amount of additional work due to the fact the some administrative tasks (insurance, tax, etc.) also always have to be completed with the reference date of 31 December for legal reasons.

Financial statements

Association year the same as a calendar year?

Question

Answer